FiFo related question

Let’s say I have

  • BTC 1 in Wallet A which is held in cold storage for > 1 year so low/no taxes
  • ALT 1 on Exchange A that I trade for BTC 2

What happens when I sell that BTC a few weeks later on Exchange A via FiFo? Did I actually sell BTC2 or did I sell BTC1 even though it’s in a different wallet?

Edit: Is this automatically handled with the “multiple Depots” option?

Asking because I don’t want to sell BTC1 unless nec. due to low/no taxes.

LIFO, FIFO, HIFO - ELI5 —Part 1: Crypto Taxation. This article is for you if you… | by | Medium

You may be instead in our AMA we had on May 6th, it goes over this! :smiley:

Timestamp 37:30 to talk specifically about Single and Multiple Deposit Tax Method
I would suggest from watching from 34:00 though becuase that talks about LIFE, FIFO, & HIFO

Thanks! One can never be safe/know enough :stuck_out_tongue:

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